On Monday, the U.S. Securities and Exchange Commission (SEC) filed charges against celebrity and socialite Kim Kardashian for illegally promoting the crypto asset Ethereummax. U.S. regulators detailed that Kardashian has agreed to settle the charges and pay a $1.26 million fine and will cooperate with the SEC’s ongoing investigation.
Kardashian was charged by the SEC, the celebrity agreed to pay a $1.26 million fine and would not sell any crypto assets for three years
In mid-June 2021, Bitcoin.com News reported on reality TV series star Kim Kardashian and her shilling of a token called Ethereum Max (EMAX). At the time, she shared an Instagram post marked “#AD,” in which Kardashian said, “I’m sharing what my friends told me about the Ethereum Max token. “Kardashian is not the only celebrity who has promoted EMAX; professional boxer Floyd Mayweather and former Boston Celtics forward Paul Pierce also apparently promoted the token.
According to an October 3 SECannouncement, Kardashian said that day that she did not disclose that she was paid $250,000 to publish an Instagram post to her 228 million followers.” Kardashian’s post included a link to the Ethereum Max website, which provided instructions for potential investors to purchase EMAX tokens,” U.S. regulators detailed Monday.SEC Chairman Gary Gensler said in Kardashian’s statement on the charges and he appeared in aanimated videoon the case.
“This case reminds us that when celebrities and influencers endorse investment opportunities involving crypto asset securities, it does not mean that those investment products are right for all investors,” Gensler said during the SEC announcement.” We encourage investors to consider the potential risks and opportunities of their investments in light of their own financial goals.” Gensler added:
The Kardashian case also serves as a reminder to celebrities and others that they are required by law to disclose to the public when and how much they were compensated in order to promote investment in securities.
Basically, the SEC’s order points out that the reality TV star and socialite violated anti-client selling laws. Without any admission or denial, Kardashian agreed to settle with the SEC for $1.26 million, including a disgorgement fine of approximately $260,000. In addition, Kardashian promised not to shill any crypto-asset related securities for three years. Kardashian has had a rough month, as she has dealt with controversy over a sex tape released featuring herself and popular singer and actor Ray J.
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